What diversification opportunity would best meet the needs of Sunrise Farm and its current customers? (Research Paper Sample)

What diversification opportunity would best meet the needs of Sunrise Farm and its current customers? Name: Institutional affiliation: Date: Introduction Businesses have the sole goal of maximizing profits and this often comes when the company has a competitive edge over its competitors. Companies including Sunrise farm have resorted to diversification in an effort to establish a competitive edge. According to () diversification refers to the development of a wide range of products, skills, or interests with a sole goal of reducing risks and increasing success. In some cases, diversification can refer to buying of different investment options so as to spread the risk of investment. Diversification is a key strategy used by many businesses to spread risks and reduce overreliance on one product and at the same time increase its market penetration ability (De Rosa, McElwee, & Smith, 2019). Diversification becomes an alternative when a company faces stagnation and diminishing market opportunities with the primary business. Often times businesses diversify by complementing an already existing product or business. In this qualitative research study, the competitiveness of Sunrise farm was explored based on its diversification abilities and strategies. Ideally, the qualitative single case study research explores some of the strategies used by the Sunrise managers to capitalize on opportunities that potentially increases business growth. Chosen methodology and research design in this case is a qualitative research methodology and also a case research design. Sample selected was purely managers from the Sunrise farm and some peer-reviewed literature. Justification of my data analysis technique Qualitative research technique is adopted in this section to prove the importance of diversification in business. Several research studies prove that diversified cropping system brings about increased productivity, nutrition diversity, yield stability, and food security. In a research study by Sherif (2018) it is concluded that crop diversification leads to high net return from crops, resource optimization, and high land utilization efficiency. According to Hafner & Pidun (2022) farmers practicing diversified cropping increased their yield between 35% and 85% in America. For Sunrise Farm, crop diversification has not only led to high value crops but also increased its competitiveness. Using qualitative research inquiry this paper explores the descriptive words used by Sunrise farm managers to explain business growth strategies. Quantitative research is ideal in finding deeper meaning about both social and economic issues from perspectives of individuals within the studied contexts (Gomes & Livdan, 2004). Quantitative research unlike qualitative offers an in-depth and subjective research approach from an individual’s perspectives. While there are many research options including quantitative research, I found it ideal to explore descriptive words from managers about farm diversification. Case study research was equally ideal for this research as it aligns strongly with quantitative research inquiry. Through case studies one gains an interpretive component of words from people, perspectives, and ideas. Data from willing managers was collected through interviews and through which connections and relationships drawn. Consistent wit the qualitative research methodology, research participants were able to explain and describe their perspectives on the company’s diversification strategies. Data collection from participants followed a single case study design where 10 managers were interviewed. The initial requirement before data collection was the need to have participants meet the eligibility requirement and played a key role addressing the overarching research questions. Those who participated in the interview session had their privacy and confidentiality protected. Research Questions Our research question was: what diversification opportunity would best meet the needs of Sunrise Farm and its current customers? Selected Interview Questions * What is your business and what are the current activities? * Is diversification a growth strategy in the company? * How has the company diversified over the years? * What are the benefits of diversification? * What are the indicators of growth in the business? * What process have you used to develop and implement business growth strategy? * Name the challenges faced while implementing the growth strategy? Results Just like different other research methodologies, qualitative research also needs research questions. The research questions encompass a range of topics but with the sole goal of understanding the participants perspective in a particular issue. The case study with an in-depth face to face interviews were complimented by bibliographical researches papers. According to () case studies in research help enlighten a decision by exploring why, how, and which. In our case, 15 interview sessions were conducted with the goal being to explore the diversification opportunities and the overall benefits accrued to the company due to diversification. Our research protocol is as follows: Research Context Unit under study Elements of analysis Diversification opportunities and accrued benefits. Source of information: * Face to face interviews * Documents from the company Diversification strategy analyzed through operational strategy * Areas of specialization * Innovation and learning * Performance objectives In order to identifying diversification sources, it was vital to understand operational strategy of the farm. Based on the interview conducted it is possible to represent considered aspects and also tabulate the importance of diversification according to the managers. Through interviews the business activities of the company were common among all the managers with all managers also reporting that diversification was an ideal strategy in realizing growth, maintaining customer satisfaction, as well as remaining competitive. Ways the farm has diversified over the years is through growing of different variety of crops. The difference according to the managers as compared when the company was not diversifying in huge. First, the revenue doubled with diversification (De Rosa, McElwee, & Smith, 2019). This is because diversification allowed the company generate revenue in more avenues, reduce risks, and minimize costs. Secondly, diversification as argued by majority of the interviewees lessened the environmental impacts, increased adaptability, and increased the company security. Diversification has increased the overall sources of revenue which means that the company is now less vulnerable to loss of income from the primary crop. More importantly, diversification allowed the business develop new skills and are now much more equipped than before. Data presented by one manager compares two phases of the business – before and after diversification. Revenue before diversification Year Revenue from maize 2010 $2500 2011 $3400 2012 $5600 2013 $7800 2014 $9800 2015 $10800 Total $39900 Revenue after diversification Cereals 2016 $22500 2017 $18500 2018 $34500 2019 $62500 2020 $50500 2021 $29500 Total $218000 Overall, the revenue increased with diversification into different types of cereals. For example, the revenue earned since 2016 was almost five times the revenue generated in the five years before diversification. The interview sessions offered a deeper understanding about the company’s diversification strategy as well as understanding the overall benefits that accrued to the company as a result of diversification. Conclusion Qualitative research study offered us a snapshot of the diversification processes in the company. As seen through the collective interviews from managers the company operates different diversification strategies in order to stretch their product mix, increase revenue, and attain the desirable market diversification. Evidently, diversification strategies are chosen based on the opportunity cost. Overall understanding is that different diversification strategies have helped the company expand in many ways. Managers argued that competition and existence of specific problems in the market gave them the reason to diversify their farming activities in addition to the diversification opportunities that arise from knowledge and experiences from previous farming operations. Arguably, the use of the case study offered the base to understand the problem and reasons why companies diversify their business operations (Schommer et al., 2019). Exploring the extent of diversification and determining the overall benefits offered to the company is critical in business growth. Revenue, market diversification, and customer satisfaction were some of the themes that emerged from the case study and face to face interviews. All domains of diversification overlapped with the identified themes. The qualitative research methodology was therefore beneficial in answering the research question though in a subjective manner. Even with the small sample size selected the content generated was much useful for the business and the researcher as it offered a more practical application. Small sample size made it possible to glean data and create a generalized perspective useful for a general population (Hafner & Pidun, 2022). Understanding the core concepts of how things and events define themselves becomes easier from a subjective viewpoint. The face-to-face interviews offered the researchers a chance to develop specific insights about diversification. Ideally, the way people talk, use words, and express opinions create a foundation for social and economic scientists to understand events and situations...